Newsflash - May 2, 2013
Member News
Two Kansas City Entities Receive New Markets Tax Credits Allocations
Kansas City Business Journal
(4-25-13)
The U.S. Treasury Department is sending $90 million in federal tax credits to Kansas City community development entities, the department announced last Wednesday. Central Bank of Kansas City and the Kansas City, Missouri, Community Development CDE each will get $45 million in New Markets Tax Credits from the Treasury’s Community Development Financial Institutions Fund. Department spokesman Matt Bevens said the tax credits can be used only for projects designed to help develop impoverished areas as defined by U.S. Census Bureau data. Groups trade the tax credits for investments in projects. The Treasury is sending $225 million to five community development entities throughout Missouri, three of which are in St. Louis. Nationally, $3.5 billion in credits will be distributed as part of the 2012 allocation, Bevens said.
One PacificCoast Bank Featured on RainMakers Television
RainMakers Television
(4-21-13)
RAINMAKERS, an original documentary television series, showcases both the heroic efforts made by impoverished people around the world who every day strive to lift themselves out of dire circumstances, and those philanthropic individuals and organizations that reach out and provide strategic support. Focused not on aid -- but on comprehensive strategies that have sustainable outcomes, such as education, health, rule of law, engaging governments, empowering women and girls, clean water resources, and micro-credit -- RAINMAKERS tells stories that inspire global transformation. This RAINMAKERS video features One PacificCoast Bank CEO Kat Taylor discussing whether "triple bottom-line banking" is and should be the new standard for banking.
Broadway Financial Replaces CFO
American Banker
(4-19-13)
Broadway Financial in Los Angeles has named a new chief financial officer. Brenda Battey has been approved by the Federal Reserve Bank of San Francisco to be CFO of the company. It also plans to name her CFO of its Broadway Federal Bank subsidiary, pending approval by the Office of the Comptroller of the Currency, President and Chief Executive Wayne-Kent Bradshaw said. Battey succeeds Sam Sarpong, who was terminated on Jan. 31, the company disclosed in February. Broadway was forced to restate its earnings last year after the OCC ordered it to increase its loan losses. Both Broadway and its bank have been under regulatory orders since 2010. It made a profit of $588,000 in 2012, after losing over $14 million in 2011.
Mission Valley CEO Named President of Indie Bankers Group
SCVNews
(4-17-13)
Tamara Gurney, President and CEO of Mission Valley Bank, has been selected as the California Independent Bankers’ 2013 incoming president. “With more than 33 years in banking, Tamara is a natural leader whose great wealth of experience in community banking will be a valuable asset in leading our association as president,” said CIB Executive Director David Haithcock. “Tamara has a deep understanding of community banking issues and is the right fit to support our causes at the forefront.” Gurney believes in the importance of developing strong affiliations within the community and with clients. Her dedication and philosophy were contributing factors by the CIB Board of Directors when selecting Gurney as the 2013 incoming president. The California Independent Bankers, an affiliate of the Independent Community Bankers of America (ICBA), has approximately 7,000 members statewide and represents more than 240 community banks of various sizes and charter types within the state. It is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, superior education, and high-quality products and services.
12 Companies Considered "Best for the World"
Forbes
(4-17-13)
Founded by two former basketball apparel entrepreneurs and the former manager of Michael Dell’s private investments, B Lab is a seven-year-old non-profit based in Berwyn, Pa. that invented the concept of a “Benefit Corporation,” a company that turns a profit while benefiting its workers, its community, and the Earth. B Lab puts applicant companies through a rigorous vetting process, where it uses a 200-point system to measure companies’ performance in five areas: accountability, employee impact, consumer, and community. In the world of scoring companies that focus on the so-called triple bottom line, meaning people, planet and profit, B Lab has one of the most rigorous rating systems. Using its point system, B Lab has come up with a list of 67 out of its 730 certified companies which score in the top 10% of its point system. Recently it announced that list and dubbed those companies “Best for the World.” Among B Corps with more than 50 employees, a dozen are in the U.S. Ranked by the number of points scored, CDBA members Sunrise Banks (St. Paul, MN) and One PacificCoast Bank (Oakland, CA) were numbers #3 and #4 on the list, respectively.
Of Interest
Brown-Vitter Rearranges Financial Reform Battlefield
A year ago, the big U.S. banks were focused on repealing, or at least eliminating large parts of, the Dodd-Frank financial-reform law. Recently, this lobby let it be known that the line from big banks and their allies had shifted and that their new refrain is “let’s implement Dodd-Frank.” This Bloomberg opinion piece argues that the reality remains the same -- a very powerful lobby is working flat out to ensure that the industry keeps its dangerous, nontransparent and unfair subsidies. Yet, the article argues that the winds are shifting against the megabanks for three main reasons. First, the Brown-Vitter legislation, which was introduced April 24, changes everything. Now, Senator Brown has a Republican co-sponsor, and they have converged on a strong message. Vitter, who is on the right of the political spectrum, articulates well the case for ending the implicit subsidies that exist because creditors understand that the government and the Federal Reserve won’t allow a megabank to fail. This broad and sensible message resonates across the political spectrum. Second, small banks are increasingly focused on the ways megabanks have achieved an unfair competitive advantage -- primarily through implicit government subsidies. Third, what Brown, Vitter and Fine express isn’t populist anger, but rather a thought-out plan for making the financial system safer.
Treasury Announces $3.5 Billion in New Markets Tax Credit Awards
Building on the Obama Administration’s commitment to increase economic opportunity in distressed areas of the United States, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced $3.5 billion in New Markets Tax Credit (NMTC) awards nationwide. Treasury will provide 85 organizations with tax credit allocation authority under the tenth award round of the NMTC Program. “The New Markets Tax Credit addresses one of the most significant obstacles to economic development that low-income communities face: a lack of access to patient, private investment capital,” said Treasury Assistant Secretary for Financial Institutions Cyrus Amir-Mokri. “The $31 billion worth of tax credits awarded in past years have gone toward preserving hundreds of thousands of jobs and bringing community facilities and new businesses into neighborhoods that desperately needed them. I expect today’s awardees will continue that trend.”
The S.B.A. Wants to Encourage More Small Loans
For the last several years, the Small Business Administration has attempted to expand its loan-guarantee programs by making them available to bigger businesses. But with the 2014 budget that the White House sent to Congress last week, the Obama administration is trying to solve a problem at the other end of the spectrum: how to induce banks to make smaller loans, to smaller businesses. S.B.A.-guaranteed general business, or 7(a), loans for $150,000 or less have fallen from $3.5 billion in 2007, and about 24 percent of all such loans guaranteed by the agency, to $1.4 billion in 2009. Of course, 2009 was the pit of the recession, and S.B.A.-backed lending — if not all lending — had dropped to its lowest level in recent memory. But while the agency’s loan programs have since fully recovered, the total lent in these small loans has remained flat, and constituted just 9 percent of the 7(a) program, the S.B.A.’s biggest, in 2012. The new budget for the S.B.A. would waive the agency’s fees for guaranteeing loans of less than $150,000, and this follows recent efforts to streamline one program to encourage more small loans. But some observers in the S.B.A.-lending industry doubt these moves will be sufficient.
Jobs
Center for Financial Services Innovation - Manager, Advisory Services and Nonprofit Investments (Chicago, IL)
The Center for Financial Services Innovation (CFSI) is currently hiring an experienced and versatile Manager, Advisory Services, to deepen relationships with nonprofit organizations, particularly those working to improve the financial health of low- and moderate-income individuals and families. The Manager will deliver technical assistance and consulting services to leading nonprofits serious about increasing their impact by incorporating financial products and services into their programmatic offerings. The Manager will assist nonprofits in assessing the financial needs of their clients, developing new strategies involving financial products to meet those needs, vetting product offerings, negotiating with financial service providers, and effectively implementing solutions. CFSI is looking for someone who understands how to build bridges and broker strategic and sustainable partnerships between the for-profit financial services sector and nonprofits and who can facilitate innovative thinking about new strategies to improve access to high-quality financial products and to build the financial capability of underserved consumers.
Capital One - Senior Manager, CRA Compliance (McLean, VA)
As a Community Development (CD) Project Manager you are responsible for the full range of activities related to qualifying and documenting Community Development (CD) Lending, Investment, and Service data. Other duties could include participating in the development of the performance context and self-evaluation reports. You manage the collection and qualification of all CD activities, promptly identify weaknesses in CRA performance and/or processes, bring to the manager’s attention, and actively engage in the creation of CRA procedures and process improvements. You act as a consultant to lines of business by providing training and advisory services which address CRA performance and other matters. In addition, you assist in gathering data and preparing for CRA examinations/audits, quarterly performance reports and annual CRA self-assessments. With a mission to always be exam-ready, you ensure data and reports are current at all times.
Leviticus 25:23 Alternative Fund - Executive Director (Elmsford, NY)
The Executive Director is the chief staff member and the Fund’s primary liaison to borrowers, investors, private and public funding sources, financial institutions, community organizations, and the media. S/he insures that the mission is clearly stated and understood by the staff and the Board; that all programs and policies are in concert with the organization’s mission; and the mission is updated, as conditions change. The Executive Director is ultimately responsible for management and program operations, hires and supervises staff, interfaces with staff in specific program areas, manages the Board and its committees, and supervises consultants, when necessary.
Partners for the Common Good - Multiple positions (Washington, DC)
Loan Fund Administrator: PCG is seeking a Loan Fund Administrator. This position is an excellent opportunity to learn community development lending. The Loan Fund Administrator reports to the Director of Lending. The position is responsible for managing loan servicing and portfolio administration and also assists the Director of Lending in other responsibilities related to originating and closing new loans and managing the existing loan portfolio.
Public Policy and Communications Associate: PCG seeks a creative and dynamic candidate for the position of Public Policy and Communications Associate. The Associate will support our public policy agenda and online communications strategies. This position reports to the Chief Executive Officer, but works with all members of the PCG team. This is a full time 40 hour per week position. The position is located at PCG's offices in Washington, DC.